1. Advertising
2. Personal Selling
3. Sales Promotion, and
4. Publicit
- Advertising is the dissemination of information by non-personal means through paid media where the source is the sponsoring organization.
- Personal selling is the dissemination of information by non-personal methods, like face-to-face, contacts between audience and employees of the sponsoring organization. The source of information is the sponsoring organization.
- Sales promotion is the dissemination of information through a wide variety of activities other than personal selling, advertising and publicity which stimulate consumer purchasing and dealer effectiveness.
- Publicity is the disseminating of information by personal or non-personal means and is not directly paid by the organization and the organization is not the source.
DEFINITION OF ADVERTISISNG
The American Marketing Association, Chicago, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an dentified sponsor.”
FROM THE ABOVE DEFINITIONS:
· Advertisement is a MESSAGE to large groups.
· It is in the form of NON_PERSONAL COMMUNICATION.
· It persuade the GENERAL PUBLICS to purchase the goods or services, advertised.
· It is PAID FOR by advertiser to publisher.
· Advertising messages are IDENTIFIED with the advertiser.
Advertising includes the following forms of messages:
The messages carried in-
· Newspapers and magazines;
· On radio and television broadcasts;
· Circular of all kinds, (whether distributed by mail, by person, thorough tradesmen, or by inserts in packages);
· Dealer help materials,
· Window display and counter – display materials and efforts;
· Store signs, motion pictures used for advertising,
· Novelties bearing advertising messages and Signature of the advertiser.
Advertising Objectives
Each advertisement is a specific communication that must be effective, not just for one customer, but for many target buyers. This means that specific objectives should be set for each particular advertisement campaign. Advertising is a form of promotion and like a promotion; the objectives of advertising should be specific. This requires that the target consumers should be specifically identified and that the effect which advertising is intended to have upon the consumer should be clearly indicated. The objectives of advertising were traditionally stated in terms of direct sales. Now, it is to view advertising as having communication objectives that seek to inform persuade and remind potential customers of the worth of the product. Advertising seeks to condition the consumer so that he/she may have a favorable reaction to the promotional message. Advertising objectives serve as guidelines for the planning and implementation of the entire advertising programme.
Advantages of advertising
· Advertising is considered multi dimensional.
· It helps number of marketing activities.
· It is a technique of sales promotion.
· Sales volume is increased by advertising.
· It helps and supports the salesman in selling the products.
· Consumer knowledge about the product is increase by advertising.
· It helps the consumer to save their time in purchases.
· It helps the manufacturer sell their products.
· It helps quick selling is possible which leads to more production at less cast.
· The relation between wholesalers and retailers is improved through advertising.
· Advertising introduces new products, stimulates markets regarding the existing Product and repeated sales
BENEFITS TO MANUFACTURERS:
1It increase sales volume. On the one hand, it reduces the cost of production and,on the other increases profits.
1. It helps easy introduction of products into the markets.
2. It helps to create an image and reputation not only of the product but also of the advertiser.
3. Retail price maintance is possible.
4. It helps to establish a direct contact between manufacturers and consumers.
BENEFITS TO WHOLESALERS RETAILERS :
1. Easy sale of the products is possible since consumers are aware of rhe product
and its quality.
1. It increases the rate of the turnover of stock.
2. It supplements the selling activities.
3. The reputation credited is shared by the wholesalers and retailers and alike.
4. It enables them to have product information.
BENEFITS TO CONSUMERS
1. Advertising stresses quality and very often prices. This forms an indirect guarantee to the consumers. Further more, large scale production assured by advertising enables the seller to sell the product at a lower cast.
2. It provides an opportunity to the customers to compare the merits and demerits of various substitute products.
3. This is perhaps the only medium through which consumers could know the varied and new uses of a product.
4. Modern advertisements are highly informative.
BENEFITS TO SALESMEN
1. Introducing the product is made easy.
2. Advertising prepares necessary ground for a salesman to begin his work. Hence sales efforts are reduced.
3. The contact established with the customer by a salesman is made permanent through advertising.
4. The salesman can weigh the effectiveness of advertising when he makes a direct contact with the customer.
BENEFITS TO COMMUNITY
1. Advertising in general is educative in nature. In the words of the late president Roosevelt of the USA, ‘Advertising brings to the greatest number of people actual knowledge concerning useful things; it is essentially a form of education and the progress of civilization depends on education’.
2. Advertising leads to large scale production creating more employment opportunities.
3. Advertising has made more popular and universal the uses of such inventions as the auto mobiles, radios, various household appliances. “Advertising nourishes the consuming power of man. Its creates wants for a better standing of living.. It spurs individual exertion and greater production”.
CONCEPT OF SALES PROMOTION
Sales promotion consists of diverse collection of incentive tools, mostly short-term designed to stimulate quicker and / or greater purchase of a particular product by consumers or the trade.. Sales promotion includes tools for consumer promotion (for example samples, coupons, prizes, cash refund, warranties, demonstrations, contest); trade promotion (for example buying allowances, free goods, merchandise allowances, co-operative advertising, advertising and display allowances, dealer sales contests); and sales-force promotion (for example bonuses, contests, sales rallies).Sales promotion efforts are directed at final consumers and designed to motivate, persuade and remind them of the goods and receives that are offered. Sales persons adopt several techniques for sales promotion.
Definitions of Sales Promotion
W.J. Stanton defines sales promotion as all those activities other than advertising, personal selling, public relations and publicity that are intended to stimulate customer demand and improve the marketing performance of sellers.
Purpose of sales Promotion
Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, while a free management advisory service comments along-term relationship with a retailer. From the marketer’s perspective, sales promotion serves three essential rolesit informs, persuades and reminds prospective and current customers and otherselected audiences about a company and its products. Because distribution channels are often long, a product may pass through many lands between a producer and consumers. Therefore, a producer must inform middlemen as well as the ultimate consumers or business users about the product. Wholesalers, in turn must inform retailers and retailers must inform consumers. As the number of potential customers grows and the geographic dimensions of a market expand, the problems and costs of informing the market increase.
Objectives of Sales Promotion
The basic objectives of sales promotion are:
i) To introduce new products
To induce buyers to purchase a new product, free samples may be distributed or money and merchandise allowance may be offered to business to stock and sell the product.
ii) To attract new customers
New customers may be attracted through issue of free samples, premiums, contests and similar devices.
iii) To induce present customers to buy more
Present customers may be induced to buy more by knowing more about a product, its ingredients and uses.
iv) To help firm remain competitive
Sales promotions may be undertaken to meet competition from a firm.
v) To increase sales in off season
Buyers may be encouraged to use the product in off seasons by showing them the variety of uses of the product.
vi) To increase the inventories of business buyers
Retailers may be induced to keep in stock more units of a product so that more sales can be effected.
RATIONALE OF SALES PROMOTION
Rationale of sales promotion may be analyzed under the following points.
??Short-term results
Sales promotion such as coupons and trade allowances produce quicker, more measurable sales results. However critics of this strategy argue that these immediate benefits come at the expense of building brand equity. They believe that an over emphasize on sales promotion may under mine a brand’s future.
??Competitive Pressure
If competitors offer buyers price reductions, contest or other incentives, a firm may feel forced to retaliate with its own sales promotions.
??Buyers’ expectations
Once they are offered purchase incentives, consumers and channel members get used to them and soon begin expecting them.
??Low quality of retail selling
Many retailers use inadequately trained sales clerks or have switched to self service. For these outlets, sales promotion devices such as product displays and samples often are the only effective promotional tools available at the point of purchase.
SALES PROMOTION PLAN PREPARATION
There is wide acceptance that sales promotion is one of the most mismanaged of all marketing functions. This can be attributed to the confusion as to what sales promotion really is - which often results in expenditures not being properly accounted for. Some companies record it as advertising expenditure, others as sales force expenditure and others as general marketing expenditure - while the loss of revenue from special price reductions is not recorded at all.
The companies can no longer afford not to set objectives or to evaluate results after the event, or to fail to have some company guidelines. For example, a 1 Euro case allowance on a product with a contribution rate of 3 Euro per case has to increase sales by 50% just to maintain the same level of contribution.
In order to manage a company's sales promotion expenditure more effectively, there is one essential step that must be taken. First, an objective for sales promotion must be established in the same way that an objective is developed for advertising, pricing, or distribution.
Advertising, Promotion And The Brand
By now it is clearly understood that The role of Advertising and promotion In fast moving consumer Good Markets. Advertising has been seen as one of the primary tools of Brand Building. The high cost and difficulties of mass advertising are seen as one of the major challenges to fast moving consumer good brands.
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